Crypto Backed Loans

You must understand crypto finance and how it works before you take out this type of loan. Like any loan, there are risks and advantages, and you need to make sure you grasp these and the real-world impact this kind of finance can have on your crypto holdings, what taking on this type of debt means and how to use this type of finance responsibly. 

Flexibility

One of the most valuable things about a crypto backed loan is its flexibility. Lenders don't need to see a specific use case for this type of finance, which means that as long as you have a good rationale for borrowing, lenders can consider offering you a loan. Another advantage is that cryptocurrency finance allows you to access capital without selling your cryptocurrencies. Cryptocurrencies have risen and fallen in terms of valuation over the past years, but they are here to stay. Like fiat cash, they are cyclical, so any periods of low valuations will usually be followed by appreciation. This means you'll want to go long on investments, riding out any dips and holding your digital assets for as long as possible. Cryptocurrency allows you to do this while still allowing you to access capital by taking out crypto loans backed against these assets instead of selling them. 

Tax 

While you'll want to go long on cryptocurrencies to generate as much ROI as possible, disposing of these assets prematurely to create capital is usually not fiscally advantageous. Selling your digital assets can trigger considerable capital gains liabilities. If you need capital quickly, any tax you need to pay will eat into the liquidity you will have available for your project. As a result, borrowing against your cryptocurrencies is often a better option than disposing of the asset altogether. 

Lenders

Despite the prominence of cryptocurrencies, only a few lenders can provide cryptocurrency finance. Lenders tend to specialise in either large loans (£100,000 or more) or small loans of a few thousand pounds. A lender that offers large loans usually cannot provide small loans, and vice versa, so knowing which lender to approach is critical to moving fast and getting the best deal. We will identify suitable lenders for you, and explain why they will be the best lender for you, so you know our rationale, logic and approach. While we're negotiating the loan, we will walk the lender through the reasons why you want finance in detail to facilitate your ability to access cryptocurrency finance. 

Interest

Lenders that offer cryptocurrency finance are free to set their own rates, and interest is usually more expensive than conventional finance. Cryptocurrencies can still fluctuate quite significantly in value, and lending presents more risk to lenders than other types of loans secured against other asset classes, which is reflected in lenders' rates. Arguably, crypto loan brokers need to be more specialist to offer this type of loan, given digital assets are still so new, and regulation remains complex, which also adds to the interest rate. Larger loans will also usually have higher interest rates than smaller loans.

Lenders don't usually offer products or an umbrella interest rate – every loan will be priced to order. Working with a broker is the best way to maximise what you can borrow while getting the lowest possible rate.

There are plenty of places to get crypto backed loans online – so why use a broker? There are plenty of different reasons, which include:

Maximise what you can borrow

Cryptocurrency lenders offer different LTVs, and what they will let you borrow can also depend on the state of the market. You will always want to maximise what you can borrow, and we can help broker the deal that will see you get the highest LTV available.

Negotiated offers 

Lots of cryptocurrency lenders offer package deals and defined lending products. We can negotiate the deal that will be most beneficial for you. This might be in terms of how you can use the loan, how much you can borrow, negotiating restrictions or limitations of the loan, or simply getting you an offer which delivers more flexibility than you'd find from a packaged deal. 

Access regulated and trustworthy borrowers

There are plenty of crypto loan options out there, but not all of them are secured by qualified experts. Especially with online lenders, it can be challenging to understand who the team behind the business is, where the company is based, how secure the set-up is, where the capital comes from, and the lender's expertise in the crypto space and in lending. We only work with regulated and dependable lenders with the background (both in knowledge and infrastructure) to facilitate responsible and proper lending, which are set up transparently and in line with all necessary regulations.

Access significant crypto backed loans

You may want a large loan secured against your cryptocurrencies. We are experts in the space and can broker loans of £1 million or more. We specialise in large cryptocurrency loans and know how to set up and execute these deals.  

Access the whole market 

We broker loans against cryptocurrency of any size. To do this, we have relationships with all the lenders that specialise in writing both large and small loans. The lenders that write smaller loans are usually not the right parties to approach if you want to borrow a significant amount, and vice versa. We can go directly to the lenders that will offer the best deal for the amount you wish to borrow, saving you time all while getting you the best deal. 

Complete loans quickly

In theory, it is easy to access crypto loans quickly. If you are arranging the loan yourself, you will find that completing the application process, getting the documents you need and working with your lender will take more time than you anticipated. Things can change quickly, and sometimes you'll find that there's a problem you need to deal with before you can complete the loan. We're here to help. We think forward to understand where there might be roadblocks, and we will help you deal with these before they arise. If there's a problem during the deal, we will work with you to sort these out as quickly as possible, taking over as much of the work needed as we can.